What distinguishes non-advised sales from advised sales?

Non-advised sales are characterized by the absence of personal recommendations provided by a financial adviser or sales representative. In non-advised sales, consumers typically engage with the product on their own, often relying on market information and their understanding of the products available. In contrast, advised sales involve a level of guidance where an adviser assesses the client’s needs and recommends suitable products based on that assessment.

In non-advised scenarios, customers are expected to have sufficient understanding of the coverage details to make an informed decision without the direct influence of professional advice. This means they must navigate through the information themselves, which emphasizes their responsibility in the purchasing process. The focus is on consumer autonomy and self-service.

The presence of a sales representative typically indicates a more traditional, advised sale. Personal recommendations are inherent to advised sales, where tailored advice is given based on the customer’s specific situation. The commission structure may vary across both types, but it does not distinctly define the nature of the sales as directly as the personal guidance and the required understanding of coverage do.